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ACM sets tariffs of new Dutch Heat Act

The Netherlands Authority for Consumers and Markets (ACM) has set the tariffs according to the Dutch Heat Act. This act will come into force on January 1, 2014. An estimated 8 percent of all Dutch households will be affected by this act, as they get their heat from individual-building heating or district heating.

For 2014, ACM has set three tariffs:

  1. The maximum price for supplying heat. This tariff is composed of a fixed amount of EUR 254 with a variable tariff of EUR 24.03 per gigajoule. This maximum tariff is set for the entire year and cannot be changed during the year.
  2. The tariff for metering. This tariff has been set at EUR 24.54 for 2014.
  3. The connection tariff. For 2014, this tariff has been set at EUR 911.78 for all new connections up to 25 meters from an existing heat network. For connections longer than 25 meters, an additional tariff of EUR 31.31 per meter is added.

All amounts include Dutch VAT. Heat suppliers are not allowed to charge higher tariffs than these maximum tariffs. Conversely, they are obviously allowed to charge lower tariffs. The Dutch Heat Act only covers small-scale users: consumers, and small and medium-sized businesses with connection capacities of up to 100 Kilowatt.

Objective of the Dutch Heat Act

The objective of the Dutch Heat Act is to protect customers against too high prices. After all, households and businesses are completely dependent on their supplier. Heat consumers are unable to switch suppliers, and they cannot switch to natural gas either.

‘No More Than Otherwise’

The maximum heat price is based on all costs that users would have incurred if they had had a natural-gas connection and consumed the same amount of heat. Users on the heat networks therefore do not pay more than they would have paid on gas networks. This principle of ‘No More Than Otherwise’ (in Dutch: Niet Meer Dan Anders) is based on an average user  with a natural-gas connection. In the Netherlands, an average user of natural gas is defined as someone with a G6 meter and a combi boiler with HR107 label with comfort class CW4 for tap water.

Consumers that wish to know more about the Dutch Heat Act can find more information on the website of ConsuWijzer, the consumer information portal of ACM.

More information for consumers about the Dutch Heat Act (in Dutch)